The regulatory body's decision to make the British banking sector was shocked. Its former hope that the hard line for the matter of the former Chancellor of the Exchequer Osborne and FCA CEO Martin Wheatley have to step down after the eased. However, Andrew Bailey, who did not expect to succeed last month, has taken the move.
"Setting a deadline for PPI misconduct sales complaints can protect customers and market integrity," said Bailey, "and we heard feedback from many sources that this is a timely move."
According to the New City Agenda think tank, the cost of the PPI scandal has reached 37.3 billion pounds. Bank of London shares fell as the stock price decides. Lloyds fell 2% in early trading, with Royal Bank of Scotland down 2.8% and Barclays down 2.8%.
Lloyds Bank, which paid the most for this, said it was disappointed with the delay. The bank, the UK's largest seller of PPIs, has long called for an early cutoff, saying the deadline has been too long.
"While we welcome the opportunity for clarification provided by the update policy, we are disappointed with the two-year deadline, which may lead to more compensation for our customers."
Gary Greenwood, a bank analyst at stockbroker Shore Capital, said it could cost Lloyds another £ 1bn.
"The need for additional compensation and the amount of compensation is unknown at this stage, and we would not be surprised to see an additional £ 100 million or even £ 1 billion extra per big bank, "Ed Bank."
Lloyds has paid £ 16 billion for such complaints. The bank received an average of 8,500 complaints per week in the first half of 2016. The report said the number of complaints last week has dropped to 6700 cases. The compensation was also paid off for the first time. Just to see the dawn, there are bad news came, I am afraid that more than "disappointed."
However, calling it "self-inflicted" is not an exaggeration. The bank began selling insurance to borrowers since the late 1990s, claiming customers could protect their income when sick and unemployed. But in fact a lot of related policies are invalid, and was imposed on customers who do not need them or to sell illegally.
Regulators began to impose restrictions on PPI sales in 2005 and 2011, respectively, and the Supreme Court began processing complaints dating back several years, causing banks to pay billions of pounds in damages.
Misleading PPI - How many people do not know they ever have PPI? Digital estimates have more than 16 million policies that are not added on the client's knowledge or consent.
It is plausible rather, a lot of people to choose PPI or pay protection they do not even know what it is.
Known by other names similar to loan repayment insurance, redundancy protection, loan protection cover, mortgage payment, and credit protection insurance; such insurance is often sold to people when they take a loan.
Banks and other lenders will sell this coverage to borrowers so that they can continue to use the minimum monthly payments if they happen to be unable to repay borrowed money because of unforeseen circumstances such as unemployment, accidents and similar incidents. The insurance provider should keep the borrower up to the minimum payment for a period of one year or so, in which the debtor is expected to receive another job or recover from the accident.
However, the fact of this matter is that many people have purchased payment protection insurance despite the fact that they may not need it. Because it is rather difficult to determine whether the ultimate borrower will default or not, either they are convinced they need it, or simply incorrectly informed about it.
Why banks sell PPI?
There have been cases where potential borrowers have lenders station to make small loans from the loans themselves, while the actual earned commission is lured from sales coverage. But many banks have misled their debtors into protecting their payment protection, as these dramatically increase monthly payments. Citizens Advice Bureau study found that an increase of up to 56% for this payment! There is basically no point in purchasing this magazine cover, unless you feel that you really may not be able to keep up with the times of the minimum payment time.
Debtors, however, often do not explain why they need coverage. In some cases, people are so desperate to get loans, and they end up in compliance with the lenders placed in front of them even though the terms are not mandatory for all conditions.
Further Information On The PPI Deadline Shows that, claims for miss sold payment protection insurance, submitted after that date will be too late.
Share This Article
